💨 Abstract

The article discusses concerns raised by the Governor of the Reserve Bank of India, Shaktikanta Das, about the increasing use of AI and machine learning in global financial services. He warns of financial stability risks, such as concentration risks, systemic risks from potential disruptions, increased cyber threats, and difficulties in auditing and interpreting algorithms. He also mentions the rapid expansion of private credit markets with limited regulation as a separate risk to financial stability.

Courtesy: theprint.in